With the U.K. government set to implement a tax surcharge beginning April this year, investors are flooding in the British property market. Among them are the expats from the United Arab Emirates and Qatar.
An increasing number of enquiries from UAE and Qatar expats has been observed ahead of the 3 percent stamp duty surcharge that the U.K. is going to impose for buy-to-let investors and second homeowners, according to Emirates 24/7.
Kevin White, Head of Distribution at deVere UK, said that "More than 70 per cent of all enquiries come from people living and working outside Britain. The overwhelming majority of these individuals - approximately 45 per cent - currently reside in Qatar and the UAE."
The rush in getting into the British property market among them is because they wouldn't want to pay extra tax, which is a sensible reason. Unfortunately though, it will not be easy for them to invest in the U.K.'s real estate as they are typically viewed to be "high risk." This is because they have low U.K. credit rating, having lived and worked outside the country, earned a different currency, or been employed by non U.K.-based firm.
Further to Emirates 24/7 report, White said, "Expats also need to consider other important factors including the pitfall of wasting money on excessive rates and the ability to reclaim tax within 18 months."
He added, "Therefore to avoid wasting time, effort and money, it is recommended that expats wanting to purchase property in the U.K. seek advice from advisers who have relevant experience of cross-border financial matters, who will help them fulfil the criteria in an increasingly strict mortgage environment, and who have established relationships with the relevant U.K. lenders."
On the contrary, an earlier report from MarketWatch, said foreign investors are pulling out of the U.K. According to the Royal Institute of Chartered Surveyors, overseas investors are retreating from the country's commercial real estate as oil prices continue to slide down and stock markets remain volatile.
